Healthcare Question of the Month

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Question: What happens now that healthcare reform has passed? What does this mean for me?

Answer:Healthcare that Works. Healthcare that is Safe. Healthcare that Leaves No One Behind.

This is Columbia St. Mary’s Call to Action by our sponsor, Ascension Health, the largest Catholic healthcare system in the nation. Now that healthcare reform has passed in Congress, we have strengthened our ability to ensure that no one is left behind with coverage for 32 million more Americans.

Because many of our nation’s citizens are still divided on the importance of this legislation, it is prudent to pass along two recent articles that will help clarify what this healthcare reform means.

What Does Healthcare Reform Mean to You?Check out this graphic, featured in the March 21, 2010, online issue of the New York Times. It's an interactive tool that offers an outline of the basics based on your own current personal situation.

What’s Going to Happen Now That Healthcare Reform Has Passed?This timeline, from “When healthcare reform will affect you,” recently featured on cnn.com, offers an outline of when changes will go into effect.

Within the First Year:

Young adults will be able stay on their parents' insurance until their 26th birthday.

Seniors will get a $250 rebate to help fill the gap in Medicare prescription drug coverage.

Insurers will be barred from imposing exclusions on children with pre-existing conditions.

Insurers will not be able to rescind policies to avoid paying medical bills when a person becomes ill.

Lifetime limits on benefits and restrictive annual limits will be prohibited.

New plans must provide coverage for preventive services without co-pays. All plans must comply by 2018.

A temporary reinsurance program will help offset costs of coverage for companies that provide early retiree health benefits for those ages 55 to 64.

New plans will be required to implement an appeals process for coverage determinations and claims.

Adoption tax credit and assistance exclusion will increase by $1,000.

A 10 percent tax will be imposed on amounts paid for indoor tanning services on or after July 1.

Businesses with fewer than 50 employees will get tax credits covering 35 percent of their healthcare premiums, increasing to 50 percent by 2014.

Contributions to flexible savings accounts will be limited to $2,500 per year, indexed by the Consumer Price Index in subsequent years.

The Employer Medicare Part D subsidy deduction will be eliminated. Employers will lose the tax deduction for subsidizing prescription drug plans for Medicare Part D-eligible retirees.

There will be increases to the income threshold from 7.5 percent to 10 percent of adjusted gross income. Those older than 65 can claim the 7.5 percent deduction through 2016.

The hospital insurance tax will increase 0.9 percentage points for those earning more than $200,000 ($250,000 for married filing jointly), and it includes net investment income.

A 2.9 percent excise tax on the first sale of medical devices will be established. Excepted are eyeglasses, contact lenses, hearing aids or other items for individual use.

2014:

Citizens will be required to have acceptable coverage or pay a penalty of $95 in 2014, $325 in 2015, $695 (or up to 2.5 percent of income) in 2016. Families will pay half the amount for children, up to a cap of $2,250 per family.

Workers who are exempt from individual responsibility for coverage but don't qualify for tax credits can take their employer contribution and join an exchange plan.

Companies with 50 or more employees must offer coverage to employees or pay a $2,000 penalty per employee after their first 30 if at least one of their employees receives a tax credit.

Insurers can no longer refuse to sell or renew policies because of an individual's health status. Health plans can no longer exclude coverage for pre-existing conditions. Insurers can't charge higher rates because of heath status, gender or other factors.

Health plans will be prohibited from imposing annual limits on coverage.

Health insurance exchanges will open in each state to individuals and small employers to comparison shop for standardized health packages.

Credits will be available through exchanges for those whose income is above Medicaid eligibility and below 400 percent of poverty level who are not eligible for or offered other acceptable coverage.

Medicaid eligibility will increase to 133 percent of poverty for all nonelderly individuals.

An annual health insurance provider fee will be imposed across the health insurance sector according to insurers' market share to companies whose total premiums exceed $25 million.

2018:

An excise tax will be imposed on high-cost, employer-provided health plans beyond $27,500 for family coverage and $10,200 for single coverage; it will increase to $30,950 for families and $11,850 for individuals, retirees and employees in high-risk professions.